__________ Occurs When a Firm Invests in Different Types of Businesses

question 106

Multiple Choice

__________ occurs when a firm invests in different types of businesses or products or when it expands geographically to reduce its dependence on a single market or technology.

• A) Domain selection
• B) Diversification
• C) An acquisition
• D) Divestiture
• E) A merger

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Definitions:

Dictator Game

An experimental paradigm in behavioral economics and psychology, where an individual (the "dictator") determines how to split a given resource between themselves and another participant.

Behavioral Economists

Experts in a field of economics that integrates insights from psychology to understand how people make economic decisions.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society.

Fairness

The quality of making judgments that are free from discrimination, dishonesty, or injustice.